Answer to Question #45302 in Other Economics for Militra Pal
Data were collected from a random sample of 220 home sales from a community in 2003.
estimated(Price) = 119.2 + 0.485BDR + 23.4BATH + 0.156Hsize + 0.002Lsize + 0.090Age
where Price-selling price, BDR-number of bedroom, BATH-number of bathroom, Hsize- size of house, Lsize-size of lot, Age-age of house and Poor is a binary variable; when condition of house is reported 'poor' then Poor=1
R square=0.72 SER=41.5
a.Suppose that a homeowner converts part of an existing family room in her house into a new bathroom. What is the expected increase in the value of the house?
b.Suppose that a homeowner adds a new bathroom to her house, which increases the size of the house by 100 square feet. What is the expected increase in the value of the house?
c.What is the loss in value if a homeowner lets his house run down so that its condition becomes “poor”?
d.Compute R square for the regression.